2005 Peugeot 407 SV - $55,990EGC

One of the toughest tricks in the car business is to make a new model look richer than it is. All manufacturers try to do it, because the last thing buyers expect is to hear a price that's lower than they expected.

Such a proposition is a salesperson's idea of heaven. Yes, it is great value, isn't it. When would you like to pick it up?

Peugeot's new 407 does the flatter-to-deceive act beautifully. Park one next to a BMW 5-Series, do a vox pop on which is the more expensive car and the Peugeot will get more than a few nods. Yet the BMW is almost twice the price. The 407 range starts at $42,790 for the 116kW 2.2-litre four-cylinder six-speed manual ST sedan. The 100kW 2.0-litre turbo diesel HDI ST is $45,990.

The 407 replaces the 406. It's a larger car, with a stronger body and alloy front subframe on which the engine is mounted. It has also gained a lot of weight. The 407 SV, at 1660kg, is more than 250kg heavier than the equivalent 406.

The 3.0-litre V6's 155kW of power is produced at 6000rpm; 290Nm of torque is generated at 3750rpm. The engine now has variable inlet valve timing.

A six-speed sequential Aisin transmission, the first to be used in combination with a V6 in a transverse, front-drive layout, replaces the 406's clumsy ZF four-speeder.

The 3.0 has a snappy, responsive launch feel and performs strongly and smoothly across the top half of the rev range, where it also makes a sweet, sporty noise. It cruises at a silent 2000rpm in sixth gear at the highway limit. When the auto is left in Drive, kickdowns are slow to occur, which around town can occasionally expose the engine's sluggishness at low revs in the higher gears.

This is amplified by the car's extra weight, which also sees the 407 taking nine seconds to cover the zero-100kmh trip, nearly one second slower than the 406.

The Aisin transmission shifts smoothly enough. In Sport mode, the pedal is much more responsive and the engine is kept closer to its best operating range, though it does occasionally hold a lower gear for too long. It will let you run the V6 to just past 6000rpm in manual mode.

At suburban speeds, the six-speed occasionally shifts down a couple of gears, accompanied by a series of jerks as the torque convertor locks up and releases, when you lift your foot off the accelerator or touch the brakes.

The 407's independent, multi-link suspension is supplemented on the SV by electronically controlled variable rate dampers. Left in Auto, sensors read wheel deflection speeds and, in response, the damping is constantly adjusted across nine rates. Or you can simply push the Sport button and get the firmest setting. This is the preferable option.

In Auto, the damping, especially at the rear, is poorly controlled at low speeds, so around town the car pitches, bounces and floats like a barge in a big swell.

On the highway, faster wheel movement sees the intermediate rates in play. These are fine on smooth surfaces but the rear of the car can twitch and flinch on bumps. Body roll in corners is also excessive.

Sport should be the default setting, because it transforms the 407 into one of the better front drive handlers. Sport still provides a supple, comfortable, quiet ride on all surfaces but the car's dynamics are much more taut, tight and disciplined, with minimal body movement and understeer.

The steering is well weighted, accurate and has lots of feel, while the brakes are excellent in power and progression.

The wide, generously padded driver's seat is comfortable on an extended drive, though long legs might feel a lack of support at the front of the cushion. Tall drivers will push the seat well back for sufficient legroom as the footwell is shallow. This is no problem, as the steering wheel is height- and reach-adjustable. Headroom is adequate and vision is clear around the car.

The dash flows across the cabin in elegant French fashion. Ivory instrument faces are pretty but have no numbers for the 60, 80 or 100kmh increments.

Audio and air-conditioning controls are free of the strange symbols that sometimes make French cars a go-straight-to-the-owner's-manual exercise. Cruise control and audio wands can be reached without taking your hand off the wheel. Oddment storage is plentiful and the JBL audio system delivers a full, lush sound. Fit and finish quality was fine on the test car, though it did have a couple of rattles, including something loose inside the centre pillar on the driver's side.

The back seat is luxuriously comfortable for two and has ample headroom but legroom is tight if, as mentioned, a tall driver has to use most of the front seat travel.

Boot space has shrunk a little from the 406. It's reasonable, though, and extendable to a long, flat floor with the 60/40 split rear seat back (this does compromise front seat travel). A full-size spare on a steel wheel is underneath.

The Peugeot 407 SV could wear a higher price tag and get away with it.

If you're contemplating a luxury sedan - anything from a Fairmont Ghia or Holden Calais to a Mercedes-Benz E Class or BMW 5-Series - a test drive in the 407 SV will set a value benchmark that makes you dissect your shortlist with a highly critical eye.